The number of sickness and disability insurance frauds detected in Norway increased until 2013 and significantly dropped in 2014. Subsequently, the number of detected frauds increased again in 2015, reaching 308 cases. However, the number fell in the following period before growing again in 2019, reaching 260 sickness and disability insurance frauds detected in 2020.

As the number of dishonest insurance claims rises, the industry is turning to adaptable identity theft protection technology. This technology, capable of real-time user identification, is a crucial defense for the healthcare and insurance sectors against fraudsters. 

This article will explore identity verification, its requirement process, and its advantages in preventing insurance fraud.

Key Insights of the Article 

• What is identity verification?
• The rudimentary prerequisites for document verification identity
• How does digital identity verification work?
• User identity authentication to deter insurance  claims 
• Advantages of identity verification online

What is Identity Verification?

It can be defined as the process of determining the legitimacy of the individual’s identities, whether they are telling the truth or claiming who they are to be. This process ensures that the person is authentic and that whatever he declares to be is true. It also ensures that he/she was not previously involved in any illicit activity and has no intention of harming the institution and the business. 

This process is rudimentary for financial institutions and businesses and is an extensive part of their KYC process. This process is the core of identity theft protection and transpires the following to verify the individual: 

• Document Verification
• Knowledge-Based Authentication (KBA)
• Two-factor authentication (2FA)
• Database Checks
• Biometric Verification
• Liveness Detection
• Behavioral Analysis
• Address Verification
• Email and Phone Verification
• Real-Time Data Verification

Requirements for Document Verification Identity

The most commonly used type of identity theft protection is document verification. It ensures the documents are collected and analyzed manually or digitally, and then the individual’s identity is demonstrated. There are certain types of documents that are required by the insurance companies to determine identities: 

• Passport
• Birth Certificate
• Driver’s License
• Social Security Card 
• Voter Registration Card
• National Identity Card
• Military Identification Card
• Permanent Resident Card 
• Health Insurance Card
• Utility Bills 
• Bank Statements 
• Tax Documents 
• Employer ID Card
• Student ID Card
• Residency Permit
• Marriage Certificate 
• Certificate of Naturalization

How Digital Identity Verification Works?

The Identity works as the purpose is solely to demonstrate the identities of the user and confirm their intentions before making any dealings with them. There are the following steps to determine the authenticity of the applicant: 

Privacy: It protects user data and complies with regulations like GDPR and CCPA.

Collect Information: The person provides personal details like their name, date of birth, and sometimes a photo or ID document.

Check Documents: The system corresponds to the ID document (like a passport or driver’s license) to ensure it is accurate and not altered.

Biometric Check: The person may take a selfie or use a fingerprint scanner. The system compares this with the photo on the ID.

Database Cross-Check: The system checks the provided information against trusted databases to see if it matches.

Verification Result: The system confirms if the identity is verified or not.

This process helps prevent fraud and ensures secure access to services. It protects sensitive information, reduces unauthorized access, builds user trust, and streamlines onboarding. It also helps with legal requirements like anti-money laundering (AML) and Know Your Customer (KYC) standards.

User Identity Authentication To Deter Insurance  Claims 

Insurance fraud is a significant issue and requires a lot of investigation to determine the identity proofing of the applicant before giving them insurance. But it doesn’t stop here; whether the insurance companies ascertain the identity of their customers, they still need comprehensive ongoing identification protocols and monitoring. Things can happen that the insured person can sell their insurance to the needy so they get benefits in their name for less money. 

Other cases can be like the insured’s identity gets stolen by scammers. 

Therefore, insurance companies require continuous monitoring and database verification to know who they are dealing with and that they are not encountering any fraudsters. Here, identity theft protection plays an important role and provides the organizations with an extra layer of protection.

Advantages of Identity Verification Online

There are many advantages of identity verification online for insurance companies as they are:

Reduces Fraud: Accurately verifying customers’ identity helps prevent fraudulent claims.

Speeds Up Processes: It makes signing up and making claims faster and more efficient.

Improves Customer Experience: It provides a streamlined and convenient customer experience, enhancing satisfaction.

Cost-Effective: It saves finances by reducing the need for manual verification and paperwork.

Compliance: It ensures the company meets regulatory requirements for identity verification.

Increases Security: It protects customer data and reduces identity theft risk.

Accessibility: It authorizes customers to verify their identity from anywhere, at any time.

Final Statement 

The insurance industry must implement robust identity theft protection measures to combat false claims. These measures include real-time user identification, document verification, biometric checks, and continuous monitoring. These measures minimize fraud risk, protect against financial losses, and increase customer trust while ensuring compliance with legal requirements. Utilizing identity theft prevention solutions promotes a more secure and efficient insurance environment, allowing for quick processing of valid claims while avoiding fraudulent actions.